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Repossession forecasts cut

Repossession forecasts cut

Category: Mortgages

Updated: 12/11/2009
First Published: 12/11/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Borrowers have received some welcome encouragement after the Council of Mortgage Lenders (CML) cut its forecast for the number of home repossessions over 2009.

Having anticipated the year would see 75,000 repossessions in last year's housing market forecasts, the prediction had already been revised down to 65,000 in June, and has now been cut again to 48,000.

Greater understanding from lenders, new government measures and the beneficial effect of continuing low interest rates have all been credited with helping most borrowers facing difficulty to remain in their homes.

In the third quarter of the year, the CML said the number and proportion of mortgages in arrears both fell.

Although 11,700 properties were taken into possession in that time, up slightly from 11,400 in the previous quarter, the figure was still lower than the 12,700 reported in the first three months of the year.

"We are glad to have been wrong on our previous forecast for mortgage repossessions this year," said CML director general Michael Coogan.

"Low interest rates and lenders' forbearance policies have helped to cushion many households facing financial problems. Although the economy is not out of the woods yet, we no longer expect a dramatic rise in properties being taken into possession unless interest rates rise from the low levels that most commentators now expect to persist for some time.

"Borrowers should take heart from the latest findings, as they reinforce the fact that lenders really do want to keep people in their homes - and are doing so."

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